Hierarchical Component Models in Partial Least Squares Structural Equation Modeling: guidelines for second-order constructs

Abstract

Partial Least Squares Structural Equation Modeling (PLS-SEM) has been used by Business Administration researchers to model hierarchical constructs. However, through a bibliographic survey (in papers published in 2021 in the core Brazilian Business Administration journals classified as A2 in the Qualis/Capes classification system for quality of academic production) and in previous studies, the inadequacy of the way for specificating, estimating, validating and reporting has been identified. In addition, from the literature review, it was noticed the absence of clear guidelines, especially linked to the way of measuring the higher-order component of hierarchical constructs. Addressing this concern, this paper provides guidance on specifying, estimating, evaluating and reporting models of hierarchical components in PLS-SEM,specifically for second-order constructs. This guidance can support scholars and researchers who use higher-order constructs in their studies.